WASHINGTON, Jan. 13 (UPI) -- The Commerce Department said Thursday retail sales rose a seasonally adjusted 1.2 percent in December after inching up only 0.1 percent in November.
The government said a 4.3 percent jump in motor vehicles and parts demand acted to push overall sales higher in December. The increase in car sales follows recent data that showed buyers swooping in on auto makers' year-end promotions. November auto sales fell 1 percent.
Aside from auto dealers, other retailers saw spending slightly below expectations in December; data a week ago indicated December chain-store sales were lackluster. Ex-auto sales rose 0.3 percent, the Commerce Department report said.
Demand climbed at retail outlets selling, among other things, food and sporting goods.
The increase in overall retail sales was surprisingly strong and the biggest advance since September's 1.6 percent. Wall Street economists had expected sales to rise 1 percent.
Unadjusted government figures showed retail sales climbed 8 percent in 2004, the best annual increase since demand rose 8.5 percent in 1999.
The 1.2 percent sales increase is the strongest of the fourth quarter.
